Silver Rises Over 120% YTD 
Published: 06-06-2025, 10:26 am
Even as gold hits record highs and mining stocks outperform the market, investors are quietly selling off their shares in gold miner ETFs. The VanEck Gold Miners ETF is up 57% in 2025, but it has seen net outflows in every month except May. Sprott’s ETF faced outflows too, despite bullion’s new highs. According to Sprott CEO John Ciampaglia, investors are cashing out into strength rather than pouring new money into the sector. This behavior suggests profit-taking and potential caution around future mining stock valuations.
Gold Miner ETF outflows are happening for a few key reasons. Many gold-mining companies spent too much money in the past, which made investors nervous. Even though some miners are now being more careful with spending, it hasn’t been enough to win back investor trust, says Greg Taylor, chief investment officer at PenderFund Capital Management Ltd.
Gold Miner ETF outflows may be influenced by shifting investor preferences, as BofA Securities analysts recently advised investors to “buy oil, not gold.” In a May 29 research note, they pointed out that oil and gold are at opposite ends of the value spectrum. The S&P 500 is trading at its highest multiple compared to West Texas Intermediate crude since the pandemic, suggesting a strong entry point for oil. Meanwhile, gold is trading in line with its historical average, offering less perceived upside.
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